Wis official says regulatory loophole causes fraud
MADISON, Wis. (AP) — A Wisconsin state official says a Middleton foster care company’s alleged fraud was caused by a lack of financial oversight.
State Department of Children and Families officials told the Senate health committee on Thursday that the company’s unusual expenses reports caught their attention in November 2011, when several counties reported missing the company’s expenses reports.
The state says foster care companies used to set their own service rates and submit expenses to counties, but now the department can determine their rates and audit their expenses after legislators passed regulations in 2010.
The department says Community Care Resources Inc. has to pay back more than $6 million it allegedly overcharged by next Friday.
Community Care’s attorney is disputing the allegations in a letter to the committee.


Feb 15, 2013 at 3:14 p.m.
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Wow! I am disgusted that everyone can sit back and blame the Governor. Let's get one thing straight... The Governor unless he was specifically working on this "fraud" foster care companies books wouldn't know what they were doing. This makes me laugh because we have current politicians in our own state that are taking advantage of us all every single day and have launched a "war" on the middle class but not one person is doing anything about it at all!! NOT ONE!! Instead of crying about something we can't fix let me ask this!!!
Feb 15, 2013 at 10:49 a.m.
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The title should read, "Wis official says regulatory loophole PERMITS fraud." No lack of regulatory oversight CAUSES people to commit fraud. I don't know enough about the foster care system to fully understand...why do we have government agencies (Child Protective Services) AND outsource to private companies for the same effort? And did you SEE the photos of that building? Come on, did we as taxpayers need to pay for THAT? Certainly the building shouldn't be a shanty, but a modest office building would have been quite sufficient.
Feb 15, 2013 at 8:59 a.m.
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Donnaw you missed it. Who is gasping now Donna? unusual expenses reports caught their attention in November 2011, when several counties reported missing the company’s expenses reports.It was left to continue for another year. Under WALKERS watch,,,, Wislady..No you were blaming Doyle, and this happened under Walkes watch and the regulation has nothing to do with Doye as he passed it so this rype of fraud and theft could be detected.your words **I don't believe Walker was trying to take credit...but someone earlier was trying to lay the blame on Walker, before he was even in the office.*
Feb 15, 2013 at 5:42 a.m.
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carlit...now what do have to say about Walker and this issue? Choking are you?
Feb 15, 2013 at 1:59 a.m.
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I would like to thank Governor Scott Walker for fixing old problems like this. This is why he has been elected as Governor TWICE.
Feb 14, 2013 at 10:25 p.m.
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I don't believe Walker was trying to take credit...but someone earlier was trying to lay the blame on Walker, before he was even in the office.
"In the previous legislative session, the agency requested and received from lawmakers for the first time the ability to do in-depth audits of agencies for foster children that could detect fraud. In the current state budget, the agency received more audit staff."
"I look at this as a good news-bad news. The good news is that we as a Legislature gave you tools to uncover this. The bad news is how many other agencies are defrauding the government?" asked Sen. Leah Vukmir (R-Wauwatosa), the committee chair who called for the hearing.
Milwaukee Journal Sentinel...2/14
Regarding the previous Doyle story, here is another article.
Medicaid fraud aided by cutbacks in detection funding
"When a Monroe man allegedly got away with bilking $1.5 million from Wisconsin's Medicaid program over a four-year period recently, it was because the previous state administration had cut back on positions to detect and prevent fraud, officials say. They say they are now conducting annual audits and quarterly checks and have hired more people to combat fraud.
On Monday, the Journal Sentinel reported that the U.S. attorney's office in Madison has accused Anthony Anglin, 29, of five counts of filing false Medicaid claims. According to the federal lawsuit, Anglin claimed that patients were transported by cot or stretcher when they weren't, and that some patients were transported on days when they did not receive Medicaid-covered services, such as medical appointments.
Anglin's alleged fraud went on for four years, from February 2006 through May 2010. It was discovered through a routine audit, said Claire Smith, a spokeswoman for the state Department of Health Services.
Walker consolidated and improved the department's fraud prevention efforts by creating an Office of the Inspector General in 2011 and adding 19 positions to bolster fraud detection, Smith said."
"Walker consolidated and improved the department's fraud prevention efforts by creating an Office of the Inspector General in 2011 and adding 19 positions to bolster fraud detection, Smith said."
Mil.Journal Sentinel...2/7
Just think of the additional people who could have used that money!
Feb 14, 2013 at 9:32 p.m.
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Wislady your link is a GOP link about Doyle and I cannot find it on any legit News Site, Also it took Walkers administration 2 years to catch this HMMMMM
Feb 14, 2013 at 9:24 p.m.
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Wislady you were right as to Walker being sworn in, in 2011, So he does not get the credit for the regulation law that was passed in 2010.
Feb 14, 2013 at 9:21 p.m.
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The state says foster care companies used to set their own service rates and submit expenses to counties, but now the department can determine their rates and audit their expenses after legislators passed regulations in 2010. If you read this right that is how they were found out. So Doyle administration are the ones that get credit for the catch and this fraud to be made public.
Feb 14, 2013 at 6:58 p.m.
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Here is another Doyle FAIL.
State official: Ex-Gov. Doyle's administration may have allowed Medicaid fraud
http://wtaq.com/news/articles/2013/feb/0...
Feb 14, 2013 at 6:56 p.m.
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I think Walker was sworn into office in 2011.
Feb 14, 2013 at 5:46 p.m.
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In December, a daycare was charged with fraud also. Besides the food stamp fraud going on, inmates were receiving benefits, and out of state people were also using benefits.
Feb 14, 2013 at 5:10 p.m.
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Plus ONE...
And this is just local.
Imagine the Feds :-(
Feb 14, 2013 at 4:50 p.m.
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Who would have guessed that big government over-regulation and lack of oversight could lead to such a thing.
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